The U.S. dollar grew stronger vs. its major peers on early Tuesday, escaping from a three-year low it touched on the previous day. It was given a lift by rising Treasury yields. The benchmark 10-year treasury yields notched its best level since April 2014 last week as it broke above 2.727 percent.
The U.S. dollar index, inched up by 0.1 percent at 89.392 after recovering from its weakest level since December 2014 of 88.43 touched on Friday. Against its Japanese counterpart, the dollar extended its gains as it rose by 0.1 percent towards 109.87 yen. The greenback was 0.3 percent higher at 108.28 yen yesterday. As to other currencies, the euro remained flat at $1.2375, a little lower than a three-year high of $1.2538 notched last Thursday.
Gold extended its losses on Tuesday. This was after the rise of U.S. treasury yields which resulted in a firmer dollar. Looking at current prices, U.S. gold futures dropped as low as 0.4 percent to settle at $1,334.20 an ounce and spot gold closed 0.3 percent lower at $1,335.93 an ounce. Spot gold fell by 0.7 percent yesterday. It should be remembered that the yellow metal is fragile to a stronger dollar because it makes it expensive for non-U.S. holders.
As to other metals, platinum edged down by 0.2 percent closing at $1,083.97 an ounce. Platinum declined by 0.5 percent towards $998.50. Spot silver added 0.1 percent closing at $17.15 per ounce.